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> If the interest rates on that debt go up, many corporations will immediately go bankrupt. Interest rates on 10 year debt have gone up about 0.75% in the past
by ac29 5y ago
> If the interest rates on that debt go up, many corporations will immediately go bankrupt.
Interest rates on 10 year debt have gone up about 0.75% in the past year or so already (based on US 10 year treasuries, a common benchmark). They currently are at about 1.5%, a little below the average for the past decade of around 2%.
I'm curious which companies, specifically, you think will "immediately" go bankrupt if interest rates come back up to 2% - a rate they were paying as recently as 2 years ago.